Westboro may purchase 95-acre state hospital property

Tuesday

Jun 18, 2013 at 6:00 AM

By Donna Boynton TELEGRAM & GAZETTE STAFF

The town has negotiated an undisclosed purchase price for 95 acres of the Westboro State Hospital property, and the purchase would not require a Proposition 2-1/2 override if approved at town meeting this fall.

Westboro State Hospital closed in 2010.

The town has been negotiating with the state Division of Capital Asset Management to buy the property. Residents urged the town to make an offer after the state agency made a presentation in which it was said that the highest and best use of the chunk of land it planned to sell was an estimated 500 single- and multi-family homes. The state plans to hold onto hundreds of other acres of the hospital property, which straddles Westboro and Northboro.

There were more questions than answers Monday night as town officials held the first of three meetings on the matter. More details will be revealed as the summer wears on. More than 30 people attended the meeting Monday night in the Westboro High School Auditorium.

Town Manager James Malloy said the state had asked that the purchase details not yet be discussed publicly, but he did offer residents a glimpse of what led the town to pursue buying the land and the potential financial benefits.

Mr. Malloy said the purchase and sale agreement is expected to be signed in mid-July and at that time the purchase price will be disclosed.

“The town would purchase the property for a negotiated amount, which we have come to an agreement on with the state and will be unrestricted as far as future use,” Mr. Malloy said.

He added that the state has offered technical assistance through the Office of Business Development.

Mr. Malloy said that after buying the land, the town can resell all or a portion of it, and the town would reimburse the state with a portion of the net proceeds. The percentage of the proceeds that would go to the state — between 30 or 50 percent — would depend on how soon the property is developed, if expedited permitting is used, and if green technology is used, all of which works in the town’s favor, Mr. Malloy said.

Mr. Malloy added that the town is also negotiating to have the state carry the financing with a very attractive rate. He said the town has no interest in buying the Northboro portion of the hospital land, about one-third of the overall property.

So far, Mr. Malloy said, two companies — a film studio and a medical device company — have contacted the town about the property.

A building on the property known as Allen Hall — a boys’ detention center — will continue to be used. The state is planning to build a new detention center, at which point Allen Hall will be returned to the town.

After the state’s reuse report, the town formed its own ad hoc committee to discuss the hospital property. The committee determined that 500 potential new homes would likely require a new school to be built, at a potential cost of $6.2 million, and would mean the loss of several nearby soccer fields, which would cost about $4.4 million to replace and reconstruct.

Meanwhile, with 1 million square feet of potential commercial and retail space available, the estimated value of that land was $67.56 million, and based on the fiscal 2013 tax rate of $18.97, has a potential tax gain of $1.3 million.

“Purchasing the state hospital should in the long run and short run save the taxpayers money,” Mr. Malloy said.

“The real point is that we are trying to prevent residential development on this property,” Selectman Ian Johnson, the board’s chairman, said.

There are three historically valuable areas on the property: the main administration building, the Talbot Building and an area known as The Great Lawn.

One resident asked Mr. Malloy if the town was certain the property was clean of contaminants.

“I think it would be a terrible mistake for the town to buy the property unless it was absolutely certain it is in proper condition and not riddled with toxic waste,” the resident said, urging a professional assessment and inspection of the property. “The last thing this town needs is a crushing tax burden to provide millions in cleanup. This is not going to be a bargain for the town if it has to clean it up as a Superfund site.”

Mr. Malloy said a so-called 21E assessment has been completed by the state and it indicates that the exterior of the property is clean. The buildings, however, do contain lead paint and asbestos. Mr. Malloy said asbestos and lead paint removal are typically done by the redeveloper. If town meeting chooses, it can request an additional assessment.

Additional public meetings on the state hospital property are scheduled for August and September, but the dates are not yet final.

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